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Social Security Coverage among the Working-Age Population in South Africa

Author

Listed:
  • Timothy Köhler
  • Jabulile Monnakgotla
  • Haroon Bhorat

    (Development Policy Research Unit, University of Cape Town)

Abstract

Comprehensive and well-designed social security systems are critical to ensure that populations are adequately covered against various sources of adverse risk and volatility. Using descriptive and micro-econometric techniques on household survey and administrative data, this report provides an analysis of social security coverage among the working-age population in South Africa from 2010 to 2022. We show that coverage of social assistance has improved but remains low and varies considerably across demographic groups. Social assistance coverage is low among both the unemployed as well as a non-negligible share of the employed who are in working poverty. Social insurance coverage is also low, particularly among the unemployed and informally employed, and conversely has fallen in recent years. We also examine the performance of labour centres in the processing of unemployment insurance claims and highlight the limitations of and potential for existing datasets to better track social security coverage to aid future research and evidence-based policymaking.

Suggested Citation

  • Timothy Köhler & Jabulile Monnakgotla & Haroon Bhorat, 2024. "Social Security Coverage among the Working-Age Population in South Africa," Working Papers 202404, University of Cape Town, Development Policy Research Unit.
    • Handle: RePEc:ctw:wpaper:202404
    as

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    File URL: https://commerce.uct.ac.za/sites/default/files/media/documents/commerce_uct_ac_za/1093/dpru-wp202404.pdf
    File Function: First version, 2024
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    References listed on IDEAS

    as
    1. Timothy Köhler & Haroon Bhorat & Robert Hill, 2023. "The effect of wage subsidies on job retention in a developing country: Evidence from South Africa," WIDER Working Paper Series wp-2023-114, World Institute for Development Economic Research (UNU-WIDER).
    2. Eyal, Katherine & Burns, Justine, 2019. "The parent trap: Cash transfers and the intergenerational transmission of depressive symptoms in South Africa," World Development, Elsevier, vol. 117(C), pages 211-229.
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    9. Bassier, Ihsaan & Budlender, Joshua & Zizzamia, Rocco & Leibbrandt, Murray & Ranchhod, Vimal, 2021. "Locked down and locked out: Repurposing social assistance as emergency relief to informal workers," World Development, Elsevier, vol. 139(C).
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    More about this item

    Keywords

    Social security; social protection; social assistance; social insurance; working-age; coverage; South Africa;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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